Computerized Information Technology - Report Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Course : xxxxxxxxxxx Title : Computers Tutor : xxxxxxxxxxx @2010 Introduction The current progress in our capabilities to process and distribute information in digital form has restructured our respective economies as well as the societal structures of several nations around the globe. Computerized Information technology is no doubt a driving power towards the globalization process. Progresses especially in the early 1990s in the computer hardware, software in addition to telecommunications have led to extensive advancement in access to information as well as the economic potentials. These progresses have in no doubt been able to make possible efficiency benefits in almost all the various sectors of the economy (Usoro et.al. 2010) However contention arises on whether the expansion of computerized information technology systems have enabled global economic expansion, or rather acted as a catalyst for the global economic crisis. Computers have played a significant role in globalization. The technology has not just enabled people all over the world to come together, but it has also revolutionized the world into a global village. Through spearheading the distribution of information rapidly and more efficiently, it has also eliminated both language and geographical barriers that seem to be a hindrance to globalization. The world has therefore, as a result of IT, developed into a global village allowing nations separated by distance and language exchange ideas as well as information amongst them. It has also made communication cheaper, faster and efficient. Communication between nations and people all over the world has therefore been made easy. This has been achieved merely by e-mailing and text messaging for an instant response. The internet too has been able to provide direct communication irrespective of the geographical locations of the parties involved. This has been made possible especially with the assistance of video conferencing ( International Telecommunication Union (ITU), 2009). One of the factors to back the notion that computerized information technology has enhanced global economic expansion is linked to the fact that computerized Information Technology has ensured the development of ideas and products between various people irrespective of their geographical location. By creating resourceful and effective means of exchanging information, computerized Information Technology has no doubt been the catalyst of enhancing global integration. The progress in the ability of nations to share ideas through processing information in the digital way forms a series of developments often described as Information Technology revolution. This has restructured the economies of many nations globally (Mathiasen et.al. 2006). For instance Information Technology has led to the enhancement of various products; products that we currently use in almost all aspects of modern industrial societies. For example, 20 years ago, desktops and computers were only limited to a reasonable number of countries with technologically advancement however with technological advancements many countries have acquired such products thus enabling them be part of the global information network hence improving their economies. Computers have supported economic growth in various ways. Today, the internet in addition to the use of the web has changed commerce globally, through coming up with absolutely new ways for business people and their customers to conduct their transactions and for their respective businesses to deal with the various production input flows. Such as e- business which has significantly transformed international trade. Computers have assisted in automating major processes of business therefore reorganizing businesses and making them very cost effective, easier and time effective. This has in the process increased the level of productivity which eventually leads to increase in profit levels hence better returns to the business as well as the overall economic performance of states. For instance Computers have enabled the developing nations to create business links within the global marketplace. This has in turn been able to fuel economic expansion through active participation within the international market framework. Secondly education is a central concept of enhancing economic growth. Computers have made a significant impact on Education and training. Education provided within all levels has been transformed through enhanced communication, such as through presentational software and through Websites and other information sources and analysis facilitated by the use of Internet. In contrast to other physical products, such as the consumer goods, an individual's utilization of some of the information does not automatically cut or eliminate the possibility that another individual may benefit from the same information. Moreover, networks created upon the exchange of information, for example the Internet, tend to become more valuable to existing users as new users join them. The innovations brought about by computers have come up with new job opportunities, supporting the development and expansion of human resource to support economies .The best opportunities that come as a result of Information Technology are in the form of developing unique job opportunities such as system analysts, Web designers, programmers as well as software and hardware developers. All these form many of the new and interesting job opportunities that come along with Information Technology (Jorgenson& Vu 2005) The systems theory propagates the sharing of information among different systems for instance in this particular case, between countries. The theory further proposes that transaction and communication should offer the systems a chance to get to the equilibrium which is grounded economic independence and sustainability. However transaction and communication shared among countries (systems) has resulted to economic interdependence as opposed to independence. Chrisanthi (2008) highlights that studies on methodologies of system development indicate that many developing nations have increasingly adopted and transferred their methodologies of system development from developed states. This has resulted to dependency in form of funding to support their systems and also increase in debts, which further derails the economic progress of these countries as opposed to making improvements. Therefore advancement in the computer information systems can be solely attributed to enhancement of economic growth. 1 . The recent global economic crisis immensely impacted the economic progress that had been established earlier by many countries. The big to question raised is that what role did computerized Information technology play in propagating the global financial crisis? Kurt (2009) highlights that although Information Technology has assisted many nations develop business links within the international market, which has fuelled economic growth; it has also harmonized these economies to such a level that they have also been affected by the financial crisis. Information Technology is always set in almost all sectors; that is in every economic, social as well as the cultural activities. The Seoul Declaration on the future of the ICT economy, held between 17th and 18th June 2008, argued out that IT is unpredictable on the side of investment and this is due to the speeding up principle. It goes on to argue that investment is more or less proportional to the pace of the output change (International Telecommunication Union, 2009). Computerized Information Technology may have influenced the global crisis due to the aspect of unequal sharing of the right to use IT, known as the digital divide. Kurt (2009) highlights that the phenomenon of digital divide is actually real as has increasingly become a mirror of underdevelopment and capitalism gap between nations. Unequal divide of access to information technology resulted to a situation whereby in certain emerging regions indications of effects attributed to wireless usage resulted to a reduction in price elasticity. For example in 2008 Mexico experienced a sudden drop in price elasticity due to the shift or change in price rating and the adoption of MOU source. Another effect is that upcoming markets experienced demand resilience which analysts attributed to lack of alternatives for wireless communications. If the transformations in IT are to accomplish any promise, the various concerns as well as associated costs will require to be brought to light. Experts in IT recommend that sensible policies can assist in efficiently controlling the risks that come along with innovations without causing any damage to their gains. This increases changes either upwards or downwards during both the periods of slump as well as growth within the economy. In times of economic prosperity, IT will always have a positive impact on the economy while having negative impacts in times when the economy is not fairing on well. Information Technology therefore does not merely mean that the production outputs gets higher or make the production process turn out to be more productive (Usoro 2010). Transformations resulting from computerized Information Technology also raised the concern of reduction of human resource. The developments resulting from computers come along with other straining costs affecting our societies in one way or another. Employees in some sectors of the economy had to be laid off as a result of innovations that came along with IT. Information Technology calls for a high demand of technologically advanced workers therefore making employment opportunities obsolete (David & Graham 2003). Computer advancement enabled job security to be a worrying issue simply because technology changes day by day. This means that most of the employees have to constantly adapt themselves to new technologies through learning, especially if they intend to secure their present jobs. This means, despite making the business process more efficient, it has resulted to job opportunities redundancy, trimming as well as outsourcing. It has in the end, done away with many middle level jobs resulting to many people losing their jobs hence unemployment. Companies also spend a lot funds on training for employees in order for them to be fully equipped with knowledge concerning the new software technologies. In this situation, the consumer spending is put under pressure and sharply goes down affecting the economy. Consumer confidence also goes down rapidly with the fall of house prices as well as the stock markets. People take themselves as less rich irrespective of the unaffected income also known as the “wealth effect”. This is also accompanied by the increasing unemployment level, probably lowering down expenditures on consumption as well as increasing on fears about job security. There are therefore key descending pressures on IT expenditures, mainly on spending on goods (Usoro 2010). Economic researchers, then proposed that the use of IT had a significant role in coming up with the good macroeconomic condition. The economy however later on went through some hard tests with recession whereby real investments in businesses went down and job losses went on rapidly longer as envisaged to be in a normal recession. This extended its impacts on banks and other financial institutions as well as affecting the stock markets. Major financial institutions collapsed, several banks rescued by the government in addition to stock markets declining around the globe (Chrisanthi 2008). The globalization systems theory entails the diffusion of technologies, ideas and practices through internalization and universalization whereby distant systems can easily interact through elimination of geographical boundaries. Computer technology has assisted in advancing global interaction however the increase may have to some extent influenced the economic crisis. For instance application global accounting principle such as the fair value accounting (FVA) principles affected major institutions such as the banking industry. FVA is defined as the rate at which an asset can be exchanged or liabilities be settled between parties that are willing and Knowledgeable. Reports indicated that intensified swings in the financial approach were stated as being the cause of downward effects on the financial market. The report further establishes that an increase in FVA and assets increases banks leverage in booms which subjects the financial approach more susceptible and financial effects more severe (Lars & Jan 2006). 1 2 Conclusion There is no doubt that the world has become more of a global village and more and more dependant on computerized Information Technology as indicated by the significant role it is nowadays playing. The Internet on the other hand has proved to be an important shareholder in this era of Information Technology transformations. Both the developed as well as the developing nations have obtained tremendous benefits which have improved their economies. The various software as well as the service industries have expansively helped to enhance various nations’ economies. However as highlighted by the analysis above, advancement in computerized information technology has to some extent played a significant role in the global economic crisis. Bibliographies Chrisanthi, A. (2008).Information systems in developing countries: a critical research review. Journal of Information Technology. 23, 133–146. Available AT -https://secure.palgrave-journals.com/jit/journal/v23/n3/full/2000136a.html David A & Graham P.(2003). A critical analysis of decision support systems research Available At- journals.com/jit/journal/v20/n2/full/2000035a.html Lars M & Jan P. (2006). Business agility and diffusion of information technology. European Journal of Information Systems (15). 116–119. International Telecommunication Union (ITU), (2009), ICT Stimulus Plans for Economic Growth: Confronting the Crisis, Geneva. Kurt De . (2009). The ICT-Enabled Global Economic Crisis. Proceedings of the Second Annual SIG GlobDev Workshop, Phoenix, USA December 14, 2009 .Michigan State University http://www.globdev.org/files/proceedings2009/17_FINAL_deMaagd_ICT_enabled_econ_crisis_2009.pdf. Jorgenson, D & Vu, K. (2005).Information Technology and the World Economy, Article provided by Federal Reserve Bank of San Francisco in its journal Proceedings. Available At -http://www.frbsf.org/economics/conferences/0511/6_ITAndWorldEconomy.pdf National Research Council (U.S.), (2005), Board Globalization of materials R&D: Time for A National Strategy, National Academies Press. Usoro, A, etal. (2010) . Leveraging Developing Economies with the Use of Information Technology: Trends and Tools, IGI Global publishers. Read More